In a non-networked computer environment, it is a simple matter to enforce a software site license. Licensed software is installed on a single computer and each user's access to that computer is controlled by individual logins. The software is restricted to one machine and the number of logins is limited to a particular software application to prevent unauthorized use that is not covered by the site license. As more processing systems gradually become networked together, thereby enabling a single software application to be “shared” over multiple computers, the issue of enforcing the software site license becomes increasingly problematic. Thus, controlling the legal distribution and use of licensed software is critical to prevent unauthorized software use or “piracy.”
Any unauthorized duplicating, browsing, or using of a software product or data constitutes software piracy. There are various categories of software piracy including; (i) “soft-lifting” or purchasing a single licensed copy of software and loading it onto several computers; (ii) making unauthorized copies of software available to end users through online downloading and uploading; (iii) illegally duplicating and selling software; and (iv) selling stand-alone software that was intended to be bundled with specific hardware. Although most computer users are aware that the unauthorized duplication and use of software is illegal, there is a general disregard for the importance of treating software as valuable intellectual property. Often times the legitimate owner of the software or data product knowingly permits the software to be duplicated onto multiple machines to avoid the extra cost of additional licensing fees or the time needed to obtain additional licenses, even if they are free. These acts of software piracy are typically the most difficult to control.
The Internet provides increased connectivity for users worldwide but unfortunately at the cost of preserving software security. File sharing over the Internet is a common occurrence due to the elimination of physical as well as international software barriers. Even the software publishers that have proactively attempted to protect their software through site licenses, encryption, passcodes, and various other methods, were not fully prepared for the numerous hacking programs that compromise software security and licensing mechanisms.
In spite of the potential of increased software piracy, using the Internet as a legal vehicle for software distribution can be advantageous. Internet distribution of software from the licensor to the licensee altogether eliminates lost or damaged goods as well as late deliveries. Software vendors can electronically distribute software upgrades and additional components or modules, in conjunction with the original software license over the Internet and in higher volumes. For software recipients, Internet distribution means receiving the products faster and discounted by saving on media, shipping, labor, and storage costs.
Unlike software, hardware products cannot be distributed over an Internet channel but must be physically delivered to the customer. The separation between the software and hardware introduces additional challenges for the software vendor to track software intended for a particular hardware unit. Thus, the licensor often pre-packages the software with the machine at the time of purchase (establish the hardware/software match prior to the sale). For example, the software vendor can distribute software on computer-readable media containing a serial number or some other special identifier. When the software is installed on the machine, the unique identifier stored on the media is matched with the particular machine, thereby “unlocking” the software and essentially providing a hardware/software match. If the software is moved to another machine, the licensee typically contacts the licensor again for permission to install the software on a different machine. This approach does not generally work well for software that is downloaded from a communication channel, such as the Internet, or otherwise mass distributed.
Alternatively, the licensor can request that the customer download the software after the hardware purchase and enter the unlocking ID information at that time. The problem with this approach is that the integrity of the information can be jeopardized since it is not the licensor or manufacturer entering the information, but the customer. Also, there is no provision to track the hardware from manufacture to sale. On the other hand, during the online software registration process the system can obtain a serial number or such from the CPU in a completely transparent process to the user. While this latter approach may help eliminate some entry errors, it does not allow any flexibility in configuring the software license.
Software licenses are typically generated for the end user at the time of purchase of the associated software or at installation. For instance, the license may be created initially for a certain number of users and specific features. Any changes to the initial license require the licensee to contact the licensor and request an updated license which generally incurs additional cost to the licensee. The licensee is not able to pre-purchase software licenses or individual features of the license and store these intangible items for some future date. Rather, the vendor creates the license for the user for immediate installation of the software and charges the user at the time of installation. In this manner, the user has no opportunity to update the license without additional intervention from the licensor due, in part, to the user's inability to pre-pay for a license or license features, store the intangible items, and at some future date create a license from the stored features.
Many software vendors are turning to trusted third parties or clearinghouses to manage the licensing process, often times over an Internet channel. In these systems, a third party acts as an intermediary between the software buyer and the vendor to monitor access to the software, authorize use of, report use of and various other functions relating to the licensing of the software. One problem with these types of systems is the added cost associated with using the third party.
Accordingly, an improved system and method for software site licensing is needed. Preferably, a controlled system for tracking unique identifiers of machines from the time of manufacture through license generation of an installed software application is desired. It would be beneficial to utilize the speed and convenience of the Internet for licensing generation and distribution without compromising security. Additionally, it is desirable to allow the user to pre-pay for a software license and licensing features, and hold the license and features in a “virtual warehouse” until such time as the user is ready to generate a specific license incorporating the stored features.